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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
IDR
USD/IDR sits off recent highs. The pair last near 15695, around 0.25% stronger in IDR terms for the session so far. Yesterday's high was 15740, close to late 2022 highs. The 20-day EMA still sits lower at 15525, so unlike elsewhere in the region, the pair remains some distance away from a downside test of this support level. IDR remains the worst performer in Asian FX month to date, down 1.53% against the USD.
- BI noted late yesterday that onshore corporate USD demand was strong (see this BBG link), while Reuters also noted offshore USD was also strong, amid bond related outflow pressures.
- The broader Fed backdrop has been more helpful for IDR though since the start of the week. The chart below plots spot against the US real 10yr yield, which has moved off its recent cyclical highs.
- The flow on effect of a more dovish Fed backdrop has been positive global equity sentiment, which also typically aids the rupiah. 5yr Indonesian CDS has moved away from recent highs as well, last near +94bps.
Fig 1: USD/IDR Spot Versus US Real 10yr Yield
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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